What's Happening in Sustainability & ESG (Week Recap 28.10 - 03.11) 🌎

This week’s read time: 8 minutes

Welcome to this edition of Green Digest, where you will get updated about everything happening in the Sustainability & ESG space in less than 10 minutes. 🌎

We go through tons of articles and data from the most reliable sources, filter & simplify them, and serve them to you in bite-sized chunks every week. 🍀

In this edition, we’ll cover:

• 91% of companies by market cap disclose sustainability-related information globally - OECD report 📑

• Over 80% of companies report disruptions from extreme weather - MSCI Corporate Resilience Survey 🌍

• COP30 approaches amid weak national progress; US administration confirms absence 🇧🇷

• The Net Zero Asset Managers initiative will resume operations in 2026; new framework removes references to achieving net zero by 2050 📈

• US companies secure major nuclear power deals to fuel AI expansion ⚡️

• and other news 🌍

THIS WEEK’S TOP NEWS

Regulatory Oversight & Industry Insights

📑 The OECD Global Corporate Sustainability Report 2025 shows that corporate sustainability disclosure and governance practices have significantly expanded worldwide but remain uneven across regions and sectors. By 2024, 91% of listed companies by global market capitalization disclosed sustainability information (up from 86% in 2022), with 88% reporting Scope 1 and 2 emissions and 76% at least one Scope 3 category. The energy sector leads in transparency (94% coverage), while real estate lags (78%). Board-level oversight of climate issues grew sharply (from 53% to 70%), and 67% of executives with variable pay now have sustainability-linked compensation. Yet, reasonable third-party assurance remains limited (17%), and disclosure of human rights data and Scope 3 emissions is still weak.

📑 Meanwhile, over 80% of companies report disruptions from extreme weather, according to the 2025 MSCI Corporate Resilience Survey, which finds that climate resilience is becoming a central pillar of corporate strategy. The survey, conducted among 550 companies across 15 countries and nine industries with the highest exposure to physical risk, shows that 94% of firms now conduct site-specific risk assessments, while 76% have formal frameworks to manage physical risks, often tying executive pay to resilience goals. Most companies (68%) plan over short-term horizons of two to five years, yet 82% already report financial or reputational benefits such as improved insurance terms and investor confidence. Still, only 19% offer resilience-focused products or services, revealing a major untapped market. Nearly all respondents (99%) see climate change as a significant economic threat and expect global temperatures to rise by 2–3°C by 2100, underscoring the reality that physical risk is now financial risk.

MORE INTERESTING NEWS

Latest developments, reports, insights, and trends

COP30 Approaches Amid Weak National Progress

As COP30 approaches in Brazil, hopes for an “implementation COP” are clouded by logistical chaos and weak national progress on climate goals. With 95% of countries missing the February deadline to update their NDCs, only 62 of 195 Paris Agreement parties have refreshed targets, undermining global accountability. Optimism is muted amid geopolitical tensions, US climate policy reversals, and economic instability. COP30, officially opening November 10 in Belém, is expected to draw the lowest leader attendance since 2019, with fewer than 60 heads of state confirmed and registration far below recent summits.

A new UN report also warns current national plans would cut emissions only 10% by 2035, far short of the 60% drop needed to limit warming to 1.5°C. Meanwhile, Bill Gates urged leaders to prioritize adaptation and human welfare over strict temperature targets, arguing that improved health, infrastructure, and warning systems have already reduced disaster deaths by 90% over the past century.

EU Ministers Seek Compromise on 2040 Target

EU climate ministers are making a final push to agree on a 2040 emissions target before COP30, as failure to do so could damage the bloc’s credibility as a global climate leader. The EU Commission has proposed a 90% cut in net GHG emissions from 1990 levels by 2040, but countries remain divided: Italy, Poland, and the Czech Republic warn it would harm industry, while the Netherlands, Spain, and Sweden demand stronger action. A compromise proposal would allow limited use of foreign carbon credits (potentially up to 5%) and flexibility if EU forests absorb less CO₂ than expected. With just days before COP30 in Brazil, a deal will hinge on one or two swing votes, testing whether the EU can balance climate ambition with economic and industrial pressures.

US Confirms Absence

The Trump administration confirmed the US will send no high-level representatives to COP30 in Brazil, marking an unprecedented absence from UN climate talks and reinforcing its opposition to global climate action. The White House said the move reflects Trump’s “commonsense energy agenda,” centered on fossil fuels and national security rather than “vague climate goals.” The administration has dismantled the State Department’s climate office and eliminated the role of climate envoy, while pursuing bilateral deals promoting oil, gas, and nuclear energy. Some governors, mayors, and activists will attend independently, but without federal backing or embassy support.

🇬🇧 The UK introduced legislation to bring ESG ratings providers under Financial Conduct Authority (FCA) supervision, marking its first formal regulation of the sector. Effective June 2028, all UK and foreign ESG ratings providers operating in the country must obtain FCA authorization. The framework, shaped by IOSCO’s transparency and governance recommendations, will address conflicts of interest, data quality, and controls. The FCA plans to propose detailed rules by year-end and issue guidance for firms determining regulatory scope, calling the move key to ensuring transparent and comparable ESG ratings that guide investment decisions.

📑 The ISSB unveiled new initiatives to help jurisdictions adopt its sustainability standards and enable them to act as a “global passport” for cross-border reporting. With about 40 jurisdictions planning to use the ISSB Standards, the board expanded its Jurisdictional Working Group into the Jurisdictional Adopters Working Group to coordinate regulatory discussions and passporting arrangements. It also introduced a Jurisdictional Rationale Guide and Tool to support countries in aligning local frameworks while maintaining global consistency.

🇪🇺 The European Commission selected 61 net-zero technology projects across 18 countries to receive €2.9 billion in funding from the EU Emissions Trading System (EU ETS). The projects, spanning 19 industrial sectors, are expected to cut 221 million tonnes of CO₂e in their first decade and support the EU’s 2050 climate neutrality goal. Funded through the EU’s Innovation Fund, the grants target energy-intensive industries, renewable energy, energy storage, net zero mobility, cleantech manufacturing, and carbon management.

WHAT ARE COMPANIES DOING?

Corporate sustainability, new tools and services & companies in the news

🚙 General Motors is cutting more than 3,000 jobs across the US as it scales back EV production amid weakening demand and policy shifts. GM cited “slower near-term EV adoption” and changes in US regulations, including the Trump administration’s rollback of a $7,500 EV tax credit and looser emissions rules, as key drivers.

🟢 Microsoft signed a 10-year deal with Arca to remove nearly 300,000 tonnes of CO₂ by converting mining waste into rock. Arca accelerates carbon mineralization in alkaline mine tailings using high-energy bursts and autonomous rovers to expose fresh material for continuous CO₂ absorption and monitoring. The company’s process offers scalable, low-energy, and land-efficient carbon removal while turning industrial waste into assets.

⚡️ Google signed a 25-year deal with NextEra Energy to buy power from Iowa’s Duane Arnold nuclear plant, which will be restarted to support Google’s expanding AI and cloud operations. The 615 MW facility, shut down in 2020, is expected to resume operations in 2029 under this agreement, which also includes plans to explore new nuclear generation in the US.

⚡️ Brookfield, Cameco, and their joint venture Westinghouse Electric formed an $80 billion partnership with the US government to expand nuclear power for AI energy needs. The plan will deploy Westinghouse’s AP1000 and AP300 reactor technologies across the US, following Trump’s May executive orders to revive the nuclear sector, speed reactor licensing, and ensure energy independence for the AI era. Energy Secretary Chris Wright called it key to “winning the global AI race.”

📊 Bloomberg launched new analytics tools to help investors gauge company and portfolio exposure to low-carbon transition risks and opportunities. The suite includes datasets on transition-related revenues and capex for over 100,000 companies, covering 23 clean energy and fossil-fuel activities, plus a Transition Capex Tool with data from 70,000 power generation deals. Aimed at assessing exposure, investments, and the credibility of corporate transition plans, the tools respond to soaring global low-carbon investment exceeding $2 trillion in 2024.

EVERYTHING FINANCE

Sustainable finance, funding rounds, acquisitions & private equity deals

📈 The Net Zero Asset Managers (NZAM) initiative will resume operations in 2026 after a year-long pause and major revisions to its commitments. The coalition, representing over $57 trillion in assets, suspended activities in early 2025 following political backlash and member exits. NZAM’s new framework removes references to achieving net zero by 2050 to reflect differing regulatory realities while allowing members to set their own climate targets and report progress annually. The group said the update aims to broaden participation while emphasizing that managing climate risks and seizing transition opportunities, estimated at up to $60 trillion by 2050, remain core to fiduciary duty.

A day after this announcement, State Street withdrew its US arm from the NZAM initiative, keeping only its Europe and UK divisions as signatories. The $5.4 trillion manager didn’t give a reason, but the shift comes amid US political and legal pressure and antitrust accusations facing climate coalitions. NZAM will re-list signatories in January, while other US firms (e.g., T. Rowe Price, Wellington) are reviewing membership under the revised commitments. State Street said its continued participation in Europe reflects regional client demand for sustainability-focused investment and reporting, while reaffirming its commitment to helping clients achieve net-zero goals.

🤝🏻 Position Green acquired Norwegian supply chain transparency firm Factlines, expanding its integrated sustainability software and advisory platform. The deal follows Position Green’s recent acquisitions of Greenomy and Morescope as it builds a unified ESG ecosystem spanning climate, nature, people, and governance. Factlines, which helps companies manage ESG and human rights due diligence across suppliers, adds 200 clients to Position Green’s 800.

⚡️ Orsted agreed to sell a 50% stake in its Hornsea 3 offshore wind project to Apollo Global Management for about $6.1 billion to stabilize its finances and avoid a credit downgrade. The deal gives Apollo half ownership and responsibility for half of the remaining construction costs of what will be the world’s largest offshore wind farm when completed in 2027, supplying power to over 3 million UK homes.

📈 Iberdrola raised €1 billion through the first hybrid green bond issued under the new EU Green Bond (EuGB) standard. The bond, which attracted €8 billion in orders from 400+ investors, carries a 3.75% coupon, the lowest for any hybrid bond this year. Iberdrola said the offering highlights investor confidence in its renewable and sustainable growth strategy, with 94% of its 2024 financing deemed sustainable and total green funding exceeding €60 billion.

Funding rounds

⚡️ SDCL will invest €100 million in German decentralized energy company Empact to accelerate its five-year €250 million growth plan. The funding will help Empact expand its renewable energy portfolio, including over 50 MWp of rooftop solar, 30 MW of green heating and cooling, and 1,000 EV charging stations, alongside energy storage and consulting services for the real estate sector.

🟢 Seaweed-based materials startup Uluu raised $16 million in Series A funding to scale production of its natural plastic alternative. Uluu’s materials match conventional plastics in performance but are compostable, marine biodegradable, and carbon negative, with potential to cut global CO₂ emissions by over 2 gigatonnes annually.

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